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Indonesia Feb loan growth slows to weakest since 2009

Indonesia's loan growth in February slowed to 8.2 per cent from a year ago, the weakest pace since November 2009, data from the Financial Services Authority showed on Monday.

PHOTO: REUTERS

[JAKARTA] Indonesia's loan growth in February slowed to 8.2 per cent from a year ago, the weakest pace since November 2009, data from the Financial Services Authority showed on Monday.

The central bank has eased policy at every meeting so far this year, cutting its benchmark rate by a total of 75 basis points, to boost loans and economic growth.

Last week, it announced a plan to switch its benchmark rate to the seven-day reverse repo in a bid to better guide market rates. Analysts said the change should eventually lead to more lending by banks.

Bank Indonesia has previously said it targets 12-14 per cent loan growth at year-end.